We hope you find these articles helpful on your search for an investment property.

Buying as an Investment – Information from the REIQ

As 1.5 million property investors around Australia will tell you, buying an investment property involves much forward planning, not unlike the purchase of a family home. But while the decision to buy a family home is usually very emotive, buying investment property should be based on a logical and calculated process.

Investors have to remember that whereas a family home is a purchase from the heart, an investment property is very much a purchase from the head.
To minimise the risk of getting stuck with a bad investment the REIQ recommends buyers do their homework and research the area they intend investing in. The REIQ recommends investors: check local newspapers, talk to a real estate agent in the area, contact the local council and Main Roads department, research the body corporate (if applicable), seek financial advice and re-evaluate regularly

Foreign investors will also need to be aware of the Australian Federal Government's Foreign Investment Policy.

Check the local newspapers

Find properties with similar features and compare their prices. There will of course be some homes that are worth more than others because of certain attributes, such as a view. But this simple research should prove a valuable guide to determining what is on the market, and at what price.
Talk to a real estate agent in the area

A good agent should be able to provide buyers with informed opinion on prices and market trends. They should also be aware of the property types that tenants are looking for and how much particular types of property should return in rent.

Contact the local council and Main Roads Department

It is also recommended that potential investors contact the local council and Main Roads Department to determine whether they are planning any major developments in the area.

Your perfect investment may soon not be so perfect when you find out a freeway overpass is being planned for your back yard.
In many cases a solicitor should be able to supply you with a list of all the searches necessary for prudent purchase. However, it is worthwhile asking for an extensive list of searches and picking out the appropriate ones for your purchase as solicitors will act only upon your instruction.

Research the Body Corporate (if applicable)

If you're investing in a unit or townhouse or any lot in a community title scheme, it may be worthwhile getting a reputable search agent to obtain and appraise the Body Corporate records. A search agent will provide you with a comprehensive written report on the state of affairs of the building, allowing you to make an informed decision to purchase.

Seek financial advice

Seeking the advice of your accountant, financial adviser and bank is also a good tip. Each will assess your investment according to different criteria and together will provide a broad picture of the financial feasibility of your investment.

Even if you're a first time investor, property investment should be considered and managed as part of an investment portfolio and, unless you're a seasoned property investor, independent advice can prove invaluable.

Like any other investment, you need to consider how much you can invest, what the goal of the investment is and how long you want to hold the investment. For a good return on property, buyers should be looking towards the medium to long term (five to 10 years).

Re-evaluate regularly

Another important factor to take into consideration is to remember, like any investment, property and the market conditions affecting it, must be monitored and re-evaluated on a regular basis.

While there are many avenues of investment in today's marketplace, a well-researched investment in property is still, and always will be, a stable and financially rewarding investment.

Not only does a buyer need to know what price they can expect to pay but they also need to be aware of what sort of return they can expect from their investment. Making sure you buy the right property makes it not only easier to rent out, but makes it easier to sell when the need arises.

This information has been prepared by the REIQ. This is only a general guide - not a substitute for professional advice. Santo Correnti Homes Pty Ltd does not guarantee the accuracy, reliability, or completeness of any information on this page, and will not be liable for any loss or damage suffered as a result of anyone's relying on this information. We recommend you obtain advice from your own financial, taxation or legal advisor before entering into financial transactions.